Karl Slym
Age : 50
Career : Started at Toyota as senior manager; spent more than 25 years in GM across roles and geographies, including seven years as head of GM’s India operations. Joined Tata Motors in October 2012.
Education : MSc in business administration, Stanford University
Interests : Music, Bollywood, cricket and travelling
It was October 2012. Karl Slym, the new managing director of Tata Motors, had just joined office. And he was keen to get a pulse of the organisation quickly. Slym asked Tapan Ghosh, regional manager (west) in the passenger vehicles division, to fix up a meeting with Kasturi Wasan, owner of Wasan Motors, one of the oldest and largest dealers of Tata cars in the country. The meeting was fixed at Wasan’s Tata-Fiat dealership in Chembur, Mumbai, at 5 pm. Slym walked into Wasan’s sprawling fourth floor office, overlooking the Sion-Trombay road, with two of his colleagues—Prashant Fadnavis, head of marketing services, and Ghosh. After exchanging pleasantries, Slym got down to business, “So Mr Wasan, how is it going?”
Wasan had been waiting for this opportunity for a long time and he didn’t hold back. Sales had plummeted to 225 units per month compared to an average of 900 units in 2008-09. Despite all kinds of marketing pushes—buy a Nano with a credit card, exchange your old motorcycle for a Nano—the car had remained a non-starter. It was the same story with the Manza, the Indica, the Safari and the Aria. There were hardly any footfalls in his showroom and his sales staff was demoralised.
“With these issues, I will not have enough money to even pay salaries to my staff. In fact, I have been thinking of closing this dealership because I have been making losses for the last two years,” he told Slym.
The new MD heard him out patiently. At the end of the meeting, which lasted about 90 minutes, Slym said, “No, Mr Wasan, don’t give up. Give me 90 days and I will do something. If you still think your dealership is not viable, then you are free to go.”
The Problem
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Correction: This article has been updated with spelling corrections.
(This story appears in the 17 May, 2013 issue of Forbes India. To visit our Archives, click here.)
Thanx Mr. Karl..... for focus on marketing
on Nov 20, 2013when the respected M.D of tata motors mr. karl slim had promised to mr wasan to give answer on his problems of sales decline within in 90 days then why he didn\'t answer it in 90 days and according to this article he dindn\'t answered in 180 days that means completely 6 months what is the reason behind that ?
on Oct 30, 2013Dear Karthik, you forgot that Slym has joined Tata from GM. So he has also got all the fevers of Tata, say something, then forget. That\'s why Tata Motors is failing....
on Nov 3, 2013strongly agree with you mr. bhattacharya, but they have to finish this fever here only otherwise tata has to close their passenger car unit very soon , they didn\'t know what an executive has to face while selling out the tata product like indigo or whatever it is , i had face those problems from very near tata has to come out with their rigidness, and has to do some thing about it , if we don\'t go so far near about seven years before when people talk about tata it looks like that they are talking about strongness , strength , durability etc but now if we heard it is only waste of all your resources to buy a product, if you are going to buy a tata product ,i know this company can do it better but i don,t know why they are ignoring this
on Nov 5, 2013Tata Motors agression and Talent cannot be questioned, but with experience of tata ownership for almost 9 years ... and working in same domain.. though some things what i notice is : 1. The structured mechanism is lacking where customer expectations in terms of service , sales and product can be captured and utilized , may it be customer feedback or complaint . 2. Dealer profitability through service , changing the mindset from sales driven to balanced business growth from sales and service . 3. Dealer process should be delinked as Customer Driven and Business driven 4. Tata brand is percieved as brand of low quality , which is key factor for First time users , ( India still has majority of FTU) 5. Holistic image needs an improvement where Customer percieve this as Package not a product .
on Oct 17, 2013At least you have got me right. I wanted to purchase Tata Indica as my first car arnd 7 yrs ago, but ended up in buying Alto. Today I am planning to buy Tata Manza \"Package\", not the \"Product\". Very true.
on Nov 3, 2013I think this TATA Motors is a classic case of a company lacking in Strategic Management
on Oct 4, 2013Valid point made earlier. Is there a plan in place for Tata motors dealerships to maintenance and repair in the United States?
on Aug 1, 2013Compact sedan segment is the best buy at present in Indian market. Swift Dzire, Honda Amaze - both are doing reasonably well. However, irony is Tata Manza Diesel (after discounts) is priced same as what Dzire and Amaze all about. Despite same pricing, much spacious interiors, much premium sedan feel and recent price cut, Tata Motors is facing issue in selling Manza, even its selling lesser then Etios Diesel, despite been a superior product for all 3 cars source for comparison of Manza with etios http://www.mycarhelpline.com/index.php?option=com_easydiscuss
on Jul 17, 2013TATA can not succeed in the areas where service / after-sales-service is required. The philosophy of SELL it and FORGET it will only take them so far. Whether it is car or phone or consumer durables, the after sales service is non-existent. Nobody (TATA customers) would like to go back to TATA after their first experience with TATA Customer Care. No Corporate can do well if they can not retain their existing customers. Just having low price is not sufficient, to attract more customers, especially if the product is also of a very low quality . Most products (not just cars), low-cost or premium would have minor issues when mass produced and marketed. It is how you deal with these issues as a Corporate which would determine good and not-so-good Brands. Great brands have totally different philosophy of thinking couple of steps ahead to provide customers a great experience year after year for umpteen years before they are regarded as GREAT BRANDS. Hope someone from Tata Motors at least bothers to read these feedbacks?????
on Jul 6, 2013Being an owner of 2 Tata cars over the past 7 years, I can very well say space in Tata cars is something no other cars can boast at in this price range. However, quality and service issues are evident and hitting the brand image of the company. As somebody mentioned in the thread, feedback is brushed under the carpet. The cars have huge potential but marketing and service pull it down to the bottom. If issues reported are fixed temporarily only until such time that the customer care calls up for feedback and after which it again surfaces, then that is a huge letdown. Instead of providing stop gap solutions to issues reported during service, it would make a mountain of difference if the issue is properly fixed and not just for a week or two. Karl has a big challenge on hand in not just ensuring that the product sells but also ensuring that the products sold are serviced properly. And this can happen only if the attitude across the company right from the product engineers to the service technician change their 'its-okay' attitude. I know friends who initially were planning to buy a Manza but backed out because of the attitude of the sales folks. If the sales rep says that the clutch in a demo car with 5000 kms on the odometer is bad because its a Tata car, you dont need to look far to know the root cause of the problems and a potential customer can only imagine what he might have to put up during service. Wishing Karl all the best.
on Jul 5, 2013I have worked in TATA Dealership after my completion of my BE Automobile, It was my right decision taken to work with TATA Dealership, because these workshops are nothing but practical workshops. As a student you can see and learn all type of technical concerns in TATA dealerships. You cannot find a single car without any concerns, and concerns will repeat day by day. The support we get from the RSM's is amazing, because TATA HR will recruit a people who knows theoretically but not practically. When I was working with TATA Dealership I was fighting with RSM's to look to customers concerns, they never bother and proper solution is not given by them intime. RSM's will always blame dealership saying that it is a wrong diagnosis, i would like to suggest TATA Management kindly appoint a skilled persons who have already working in dealerships, so that they are better in understanding customers concerns. Really I am proud of me because as a BE Automobile Engineer, I have worked in all areas in the Dealership and agained sufficient knowledge about how to make the customer satisfy. Through my own skills and dealing with customers, today I am working for a branded company in Automobile dealership in India as a General Manager and our dealership is getting SSI and CSI scores more than the country level and our dealership customer retention is more than 85%. Dealership can make revenue is only the way to look of customer retention and references. 70% of our sales and services we get only through reference and 30% we get customers to retention customers references. If all dealership follow the same, I would like to say that dealership can generate more revenue and customers will be buying the same product YOY. At least know TATA motors can get up from sleep and listen to the customers voice and customers perception, by listening this still there is a scope to improve their dealerships. If TATA officials goes in the same direction, then you can see the end day because is it nearing to all TATA Dealerships. First thing is that TATA Motors has lost Mouth of Words, and they have lost premium segment customers. Even their employees (TATA Group) are not willing to take TATA Brand vehicles and they dont want to get into trouble. If you need real feedback, let TATA group officials can have a survey with their own employees, then they will come to know the reality. Hats off to Mr. Ratan Tata for giving car for cheaper price with cheapest quality maintained car to India people. TATA cars are purchase by the people who wants to suicide in his life or people want to lose their life only can buy a TATA car and travel in this car. Kindly take this feedback and practically visit the TATA Sales and Service dealership, and understand the customers needs and requirements. Then you will understand the market scenario. Kindly come out with quality cars with better features, then people will once again look for TATA Brand vehicles.
on Jul 5, 2013I have been using an Indica Turbo for the past 7 year now. The car has not given up on me even ones. However there were some niggles that need attention ones in a while. Tata cars are good as long as the authorized service center guys just do the job. But they seldom does what they are supposed to do. What I hate in all TATA cars, Now that I own a Manza club class, is the fit and finish. After spending 9 lakks on the car, if you look closer at the corners and under carpets, you can see the inferior paint works and protruding metal pieces. Looking at the sercive center attitude compared to the last 7 year, I see a marginal improvement there. The only way TATA can see success with its wonderful portfolio of vehicles is to focus on quality workmanship, performance and a good service network. The problem with this company is right from the manufacturing until delivery and on there are quality issues. Still why people buy these cars? is because they see some value in the space and comfort it has to offer. Besides these there is nothing anyone can think off when it comes to TATA. I have heard many people say that Manza would have been sold like hot case if any other company other than TATA would have produced and sold it. I have been using the Manza for the past 7 months now and I am a happy customer with respect to the performance and space. Recently the car gave up on me and when the 24/7 service of TATA was called, they immediately responded to the location and even came down with a bottle of chilled water. Also hats off to them for taking my request of towing my car to my preferred workshop which otherwise is towed to the closest center. Things are improving, but for a significant change TATA should focus on the later.
on Jul 3, 2013I am a owner of tata vehicle for around 8 yrs now. Let me shre my point of view, just after 3 months of buying the vehicle I felt cheated. Only thing that tata offers is a car which is cheapest in segment and has more space .. nothing more. At the entry level , indica is competing with santro, alto etc .. At that segment people look for ease of driving, pleasure to drive. Now Indica is a tough vehicle to drive as compared to others for a first time buyer. You damn can\'t figure out the lenght of it\'s bonnet and length/breadth of vehicle. A/c is horrible, if you switch on a/c your car loses it\'s power. Now some of these things are fixed. Tata don\'t care about after sales support. Every other car manufacturers go for recall of their cars and provide free replacement of parts if found faulty which is a nuisance for tata. If you go even to a maruti workshop, the type of courtesy and the env that they provide for a M800 owner is more than a manza owner. Who is at fault ? so poor condition of workshops, you come across bad cheating people having attitude looking at fooling you... No one to hear to your complaints. Does a customer wants this ? Na .. who wants to treated like this ? On top of that when you are going for servicing you are rubbing shoulders with taxi drivers all the time ? Does I want that ? No .. why should I buy another tata vehicle of course I recommend all my friends and relatives to stay away from tata ... BTW most of the dealers and workshops in delhi have closed in around 2-3 months .. Is there a hope left for tata or have they given up. I guess enough points for tata to ponder and act upon if they want ... else they would be doomed in car segment
on Jul 3, 2013I have been the proud, but somewhat disillusioned and dismayed owner of three Tata vehicles now. It was a national pride thing for me, since the Indica is largely an Indian engineered car, but national pride goes only so far. The car is still value for money, and safe, but Tatas have to address the fact that Indicas have more down time than other car-makers, and more trips to the workshop, even if overall cost of ownership is low. And please, the Manza deserves a bigger engine!
on Jul 2, 2013There is a big disconnect between the company honchos and the dealers. Customer feedback regarding obvious manufacturing defects, is brushed under the carpet by \'Plant representatives\'. The problems don\'t go away if ignored. They have to be tackled head-on. Till this ostrich like approach persists, the company is only going one way: Down.
on Jul 2, 2013what is bad thing for TATA is, people are treating its vehicles as taxi\'s. 1st it should come out from that image. They need to come up with new brand and that needs finest marketing strategy.
on Jun 17, 2013main reason for decline in sale is \" word of mouth\", any one who buys tata car will never advice to his friends and relative to go for that car as due to poor quality he has suffered a lot. i have tata manza and every second month i have to take it to workshop to fix some or the other thing. same is the case with most of other fellow whom i interact at workshop. many of my friends and relative have taken my view before taking new car, i strongly advice all of them for not to go for tata cars. so untill and unless new head improves \" word of mouth\" tata motors will keep on going downhill
on Jun 11, 2013A fantastic article. You were able to piece each and every problem area which a huge organization like Tata is facing, some of which is visible while others are not. I really liked the entire article in totality as it gives me an insight about what Tata has been going through and where does it stand now after incorporating several changes.
on Jun 10, 2013Tata makes diesel cars. Diesel price is getting closer to petrol. So why should someone buy a diesel car? If Tata can build cars to answer this question, then the numbers will improve.
on Jun 5, 2013If anyone from Tata Motor\'s top executives are reading .... Indian car market isn\'t a mature market as such, and a very cost AND image conscious one. Market research may look for logic, but logic isn\'t always (in fact rarely) what drives people. Take image. People don\'t buy Tata cars because of the image of a taxi. Oddly enough, the same reasoning is given for the Toyota Etios not selling too well. But in Europe, I have seen BMWs, Mercedes Benz E-class and Audi A4/6 as taxis. Yes, Europe has much higher standard of living, but apparently Europeans aren\'t finicky about buy a BMW or Audi because it\'s also commonly used as a taxi, are they ? India has a very class conscious public, thus a car predominantly seen as a taxi, is unlikely to find a buyer for a family car. Toyota tried in vain to steer away from the taxi image, by culling the Qualis and bringing in the Innova, only to have the Innova too picked up by fleet operators. Now that Swifts and Dzires too are being registered as taxis, let\'s wait and see if Swift/Dzire sales reduce in light of the taxi image. Now what does a commercial user want in a car ? 1. Dependability, reliability and durability : the more time a car spends on the road, the more money it makes. The more time a car spends off the road in a workshop, the more money it loses. A non-functional car makes fleet availability lower, affecting business , losing customers. 2. Cheap to maintain : easy availability and low cost of spares, wide service network so that repairs/service can be done anywhere and at low cost, with low turn-around time. 3. Space and comfort : Would a customer want a cramped, uncomfortable car , or a spacious, comfortable one ? If you had a fleet of cramped, uncomfortable cars and a rival had a fleet for more spacious, comfortable cars , who would get more customers ? So - add that up and infer, that Indian customer forgoes a car that is reliable and durable, cheap to maintain, and spacious in favour of cars that are more expensive to buy and maintain, possibly very cramped ( Swift , Dzire ) - only because they are more upmarket. And yet , Suzuki loses out premium car sales ( Kizashi , Baleno , Grand Vitara ), because it is seen as a cheap, mass-market brand compared to the Hondas and Hyundais, even. Where does that put Tata Motors ? It slots in below Maruti - and nearly two classes/slots below Honda/Hyundai , the latter successfully selling the expensive Verna despite being a cheap Asian brand as per international standards ! The customer\'s mindspace is a tricky one. Money isn\'t plentiful for the Indian customer, so not only are we cost-conscious, but very image conscious in order to appear richer than we are ! What Tata Motors needs, is a re-invention of the brand name, or a new brand name ; like what Infiniti is to Nissan or Lexus is to Toyota. And besides the quality part, segregate commercial buyers from family/individuals as much as possible - not just at the showroom but also product lines. And new products, that are well built and upmarket inside out, and in no way reminiscent of the legacy Tata vehicles.
on Jun 4, 2013The main problem is design, all products (Indica, Indigo, Indigo CS, Vista, Manza, and Aria) are looking more or less same especially frontal section. Why should anyone go for high end product if it is nothing more than just like grown up brother. Tata has to design at least one full fledged entry level sedan. Trunk integration is awful in Indigo and Manza. Look at Volkswagen Vento(Polo) and Jetta(Golf) their trunk integration is so much seamless. Diesel Nano is need of the hour.
on Jun 4, 2013Another big let down for TATA cars is the way they treat their customers as guinea pigs. The current 2012 Nano is far more reliable than the original one. Same with other models like Indica, with the current one having manifold reliability over the original Indica. This is not so with other car manufacturers and their models. So people will tend to hesitate to buy Tata cars. Already there is talk of a refreshed 2013 Nano and other models like Indigo ECS. So people will wait for them to arrive, thus driving down sales of the current stock southwards. Also, they are very slow in making decisions and bringing out models. If a diesel Nano was available from late 2012 onwards, the Nano story would have been different now. Now by the time the diesel Nano comes out, diesel prices would go up even further and the tilt towards diesel cars would die down further. So there goes another opportunity. Same with an automatic/CVT version for the Nano. An affordable AT city car would have done wonders to their sales. But they didn't think on those lines too. So it's not Slym, but only God Almighty who can save Tata Motors' Indian operations.
on Jun 4, 2013Indians are proud of the brand and want to own, the company needs to ensure reliability. A four year maintenance free period and sleeker models will do the trick. In Bangalore especially people are weary of once \'cheap to maintain\' maruti bills. My friend paid 9000 for Swift service. Honda spares aren\'t widely available. Tata needs to research on such chinks and exploit it.
on Jun 4, 2013The main problem is not discussed here. Just look at the quality, its below average. Every 6 out of 10 Indicas back panel is deformed with in one year of ON ROAD. This is pathetic. Its just going out of shape, loosing finish, which drives sensible buyers, and tata gets only those buyers who looks for Diesel and a body with 4 wheels. Chnage the quality perception, rest will follow.
on Jun 4, 2013Brilliant article, I think Mr Slym has rightly pin pointed the need of the hour strategy Product planning, Quality deployment, Purchasing in all One Team one Vision, Also rightly pointed car business being run by commercial vehicle guys, The new management has enough understanding and experience of the passenger vehicles business. But it will take at least three years to arrest the current situation. Given that the car business is a cash guzzler, it will require investments in new products and marketing.
on Jun 4, 2013Brilliant article and Tata really deserves to be at the top of the table . Aria is a top notch product and yet it fails just because of a tata badge on it. Tough times ahead for Tata and i just hope they can come out of this mess pavan Proud owner of Safari :)
on Jun 4, 2013Thanx Mr. Karl.....for analysing TATA MOTORS CVBU
on May 18, 2013Look no further! Tata has the answer in-house: http://www.zigwheels.com/news-features/news/jaguar-ftype-awarded-2013-world-car-design-of-the-year/16375/
on May 17, 2013Tata Steel has just taken a $ 1.3 billion impairment charge. Indian Hotels\' acquisition of shares in Oriental Hotels has lost value. Ratan Tata\'s legacy will have to be carefully evaluated.
on May 17, 2013@ Sandeep, be proud of Tata, be proud of your country and the achievements of its captains of industry. In Europe taxi drivers prefer Mercedes Benz, see my point?
on May 16, 2013Adria,Iam just highliting the point of personal car buyers aversion to TATA vehicles. No way I mean derogatory to my country nor Tata.Tata is a symbol of legacy and I know that.
on May 17, 2013Sandeep, then maybe this is the right occasion to find out why. Tata Motors built the first completely indigenous car, the Indica. They have a range of private vehicles and SUV\'s that I find quite adapted to the Indian market. What is the reason of the \"aversion\" you have mentioned? How can this be overcome? I know this is really TML\'s marketing department\'s job, but I can\'t help ;-)
on May 17, 2013"The new MD heard him out patiently. At the end of the meeting, which lasted about 90 minutes, Slym said, "No, Mr Wasan, don't give up. Give me 90 days and I will do something. If you still think your dealership is not viable, then you are free to go." Slym's promise of 90 days ended in December 2012. It is now actually more than 180 days but Wasan hasn't heard from him." Once Tata motor's state of affairs understood by Karl Slym , he himself might have thought 9000 days may not be sufficient for him to bring the company on track .
on May 16, 2013Tata car means taxi car, and it fits the bill as that\'s what taxi guys want..more car per car.That\'s the standard notion and the personal buyers backstep because they don\'t get the premium \"feel\" with what other car owners receive in society.In India car buyers are upper middle class guys and buying TATA let\'s them down in their circle. Tata Motors, as I have understood from the article works like govt company,out of focus.
on May 16, 2013Dear, Allow a non-Indian to make a comment. I have followed Tata Motors for 9 years now, since I introduced MDI's compressed air technology to Mr Ratan Tata himself. Chairman fully understood the tremendous potential of this clean and affordable technology for the economic and environmental situation of His country. At his arrival at TML I also wrote a short memo to Mr Slym. Nano failed due to wrong marketing and too high total cost of ownership for its targeted customers. Combine the two elements above and you have the answer Chairman would have put in action.
on May 16, 2013It is not true, your technology to put plainly was \'a lot of hot air\', it did not stand independent evaluation. Is there wonder no one else is interested in compressed air technology.
on May 18, 2013I think, now TATA is going in right direction as far as we hear in the atmosphere..God knows what excatly will come out and when.. One thing is sure that Competition is very aggressive and they will also not leave any stone unturned in the business...TATA needs to work with Fourtime speed and first time right to turn around in car segment...CV market is also becmoing challening every year passing by...for TATA its now or never game...We have many examples like Escorts Tractors, now vanished within no time...
on May 16, 2013\"The man is a firm believer in the principal\" Or \'principle\'? I am sad to realize that Tata Motors is in such a sorry state of affairs. They got to really innovate in a car market where competition is so cut throat. Who\'ll come up with a car that has it entire top part built from color-changing composite-plastic material combined with carbon-fiber or something for strength? Think of those windows on the new airplanes? I think it\'s the Dreamliner that has those fun windows. Or is it the 380? Tesla is the way of the future! If not those battery packs, at least go for its sleek looks.
on May 16, 2013Don\'t know about Tata\'s quality but Forbes needs to do a better job in editing its content.. believe spelled as belive and space spelled as pace.. something is wrong. Forbes must deliver better.
on May 15, 2013